Here’s the market outlook for the week:
EURUSD
Dominant bias: Bullish
This pair consolidated last week, moving between the resistance line at
1.1250 and the support line at 1.1150. The resistance line at 1.1250 was tested
several times, but it could not be broken to the upside, owing to the ongoing
consolidation. A breakout is anticipated before the end of the week, which
would most probably favor bulls as the resistance line at 1.1250 is broken to
the upside, but the outlook on the market is bearish for June 2017. It should
be noted that certain EUR pairs may not go bearish in June.
USDCHF
Dominant bias: Bearish
This pair went sideways last week, in the context of a downtrend. Price
oscillated between the support level at 0.9700 and the resistance level at
0.9800. The support level at 0.9700 was tested several times and it could not
be breached to the downside – and that is exactly what would happen this week –
a breakout to the downside. This week, the Greenback would be weak while the
Swissie would be strong: Hence further bearish movement in the market as the
support level at 0.9700 is broken to the downside. This trend would reverse
when EURUSD plummets in June.
GBPUSD
Dominant bias: Bullish
GBPUSD is bullish in the long-term, but bearish in
the short-term. The market was caught in
an equilibrium phase from Monday to Wednesday, and then went southward on
Thursday and Friday, dropping 200 pips from the distribution territory at
1.3000 to the accumulation territory at 1.2800 (a well-anticipated occurrence).
The outlook on GBP pairs is bearish for this week and for the month of June.
Markets would generally be quiet in June, but GBP pairs would trend seriously,
going bearish in most cases.
USDJPY
Dominant bias: Neutral
The market is neutral in the long-term, but bearish in the short-term. There
was no significant movement last week, but things could become significant
before the end of this week. The demand level at 111.00 was tested many times
last week, and without success. The most probable movement is southwards, as
the demand levels at 111.00, 110.50 and 110.00 are breached to the downside.
EURJPY
Dominant bias: Bullish
There was no significant movement on EURJPY last week, save price went
slightly bearish on Friday, in the context of an uptrend. The markets would
generally be quiet in June 2017, while JPY pairs trend seriously nonetheless
(just like GBP pairs). The outlook on JPY pairs is bearish for June; plus the
most probable direction is southwards. EUR/JPY would go downwards by at least,
300 pips within the next two weeks, and that would lead to the end of the
current bullish bias.
This forecast is concluded with the quote below:
“My personal
definition of successful money management is to limit losses while at the same
time providing you with an adequate opportunity to realize a profit from the
trade.” – Andy Jordan
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